Can Bitcoin Prices Reach $90,000 Before the Fed’s Rate Decision Today?

Bitcoin experienced a rebound on Wednesday morning as the cryptocurrency market rallied, while the U.S. dollar faced pressure ahead of a Federal Reserve decision that is anticipated later today.

Key Takeaways

Bitcoin rose to approximately $89,310 after hitting $87,315 on Tuesday.
The overall crypto market increased by 1.3% in the last 24 hours, reaching $3.1 trillion.
Current uncertainty revolving around the Federal Reserve's interest rate decision is making traders cautious.
Stablecoins Tether and USD Coin have fallen to their lowest levels since November 20.
Bitcoin is showing signs of a bullish pattern on the charts, with potential to reclaim the $90,000 level soon.

Bitcoin's price has been on a downward trend since January 15. Recent trade tensions initiated by U.S. President Donald Trump regarding Canada and China have resulted in a weakening of the U.S. dollar, which hit its lowest point since early 2022. This has prompted rallies in precious metals like gold and silver, although capital has shifted away from the crypto market.

As reported by Santiment via social media, discussions currently lean more towards gold and silver compared to cryptocurrencies. During this period, the two leading dollar-pegged stablecoins—Tether and USD Coin—have also seen their values decline to their lowest since November 20, marking the steepest drop within the past ten days.

Liquidity is moving out of the crypto market, coinciding with steady outflows from U.S.-listed spot Bitcoin exchange-traded funds. The reduced buying demand has led Bitcoin to fall below the crucial $90,000 support level. It appears that traders are exercising caution ahead of the Federal Reserve's rate decision scheduled for 2:00 PM ET.

The market largely anticipates that the Federal Reserve will maintain interest rates within the 3.50% to 3.75% range during its latest policy meeting, considering the effects of three cuts implemented in late 2025, with the CME FedWatch tool indicating over a 97% chance of no change today.

If the Fed maintains its current stance, this could bolster bullish sentiment towards risk assets, including Bitcoin, as traders generally adopt a risk-on perspective when the Fed holds or cuts rates. Conversely, should the Fed adopt a hawkish tone, it might lead to a correction in crypto prices as investor optimism wavers.

Can Bitcoin prices reach $90,000 before the Fed’s rate decision today?

On the heels of a Federal Reserve announcement, Bitcoin climbed from a low of $87,315 on Tuesday to stabilize around $89,310. Other major cryptocurrencies like Ethereum, BNB, XRP, and Solana also saw gains between 1% and 3%. Despite these movements, investors are cautious, waiting for clearer signals before making further commitments.

Bitcoin Price Analysis

On the 4-hour chart, Bitcoin is seen progressing within an ascending parallel channel pattern, indicating that price momentum could continue upward as long as it remains within this formation.

Bitcoin price is trading within an ascending parallel channel pattern on the daily chart.

The momentum indicator MACD indicates an upward trend following a bullish crossover, suggesting that the rally maintains enough momentum to continue prior to a potential pullback. Likewise, the Relative Strength Index has formed a bullish divergence, considered another positive signal for buyers.

Therefore, Bitcoin might have a strong chance to reclaim the $90,000 support level soon, likely before today's FOMC meeting. A decisive breakout from this channel, coinciding with the 50-day simple moving average, could spark more aggressive buying and position BTC for further increases.